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19 Cards in this Set
- Front
- Back
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SOV decision tied directly to
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Category definition
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Category definition
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the products with which a brand competes and which function as close substitutes (soda or refreshment business)
Like core business, set of competitors must be defined with consumer benefits in mind |
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Main variable
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– a.k.a. primary category benefit, or points‐of‐parity
– The benefit that each category member must offer – e.g., if category is fast‐food, each competitor must make food quickly |
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Dynamic variable
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a.k.a. points‐of‐difference
– The benefits that non‐market leaders offer to steal share from leader – e.g., in fast‐food category, Subway’s DV is high nutrition |
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Category leader dominates on _____
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main variable..prevent competitors from catching up with continuous innovation!
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True leaders create new offers to serve unmet-maybe even unknown-needs
sony example |
Sony engineers warned Akio Morita that no need for portable cassette player
created walkman |
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Even firm within category must offer some minimum level of _______________
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main variable to remain in category
in fast food, have to be able to serve food quickly |
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4 types of customers
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1. people outside category
2. our customers 3. competitors' customers 4. multi-brand customers |
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One way to stimulate demand is to stimulate _______
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heightened usage among current customers
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another way to stimulate demand is to bring _________
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bring people into the category...but sometimes the competitors' circles also increase
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about bringing people into the category
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when the total market expands, the category leader usually gains the most (most recognizable and easy to find brand)..but there are some free rider benefits
Category leaders will generally be most motivated to expand the category Potential unintended consequences of expanding the category...still better than alternative |
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Accelerating usage through price promotions (stimulating demand)
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key question is how flexible usage rates are
a good example of increasing usage is razors because will tell us when ready to switch out if usage is inflexible, price promotions just encourage people to stockpile without eating more (bacon, chips, TP) |
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Another good way to increase usage
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highlighting multiple uses
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steal share
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steal (loyal) customers from competitors..usually not directly from competitors..use both products first in middle circle and then switch
in this case, you are convincing multi brand users to become more loyal to us and less loyal o competitor(s) |
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Stealing share is usually the strategy of choice for _____
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non category leaders (like McDonald's going after starbucks about 4 dollars..or avis going after hertz)
make comparison with category leaders..but caution going after heart loyals |
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About reassuring on main variable
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Sometimes attempts to steal share can create ambiguity about category membership
make sure that it is part of category...John Maddon: still tastes good, but its light! |
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Non-leaders can steal share in a variety of ways (2 ways)
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frontal attack: head on attack of fundamental aspects of leaders..pepsi tastes better than coke...challengers still need high resources
Flank attack: attack a leader's weak points, blind spots...attack where geographically weak..attack a segment that has been neglected by leader like subway against mcdonalds |
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Monopoly is not the optimal market share because
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really costly to get hardcores...little bit of competition is okay..all of us have diferent needs..flood to hold up exclusivity of brand
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Need to avoid "outcome bias"
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just because a company steals share doesn't mean their focus is on stealing share...like fancy feast
thinking about the intended primary source of volume |
